Moody's lowers India's FY27 GDP forecast to 6% from 6.8%

Business Apr 21, 2026

Moody's just lowered India's expected GDP growth for fiscal 2027 from 6.8% to 6%.
The main reasons? People are spending less and industries are slowing down, thanks to higher energy and input costs driven by the ongoing Iran conflict.
These pricier imports could push up the trade deficit and force the government to spend more on fuel and fertilizer subsidies.

Indian oil cement aviation hardest hit

Rising costs are hitting sectors like oil marketing, cement, and aviation pretty hard, while infrastructure and utility companies seem steadier since they rely more on local fuel sources.
Moody's also points out that India's heavy dependence on Middle Eastern oil is risky: it could disrupt agriculture, food security, or even remittance inflows if things get worse in the Gulf region.